Côte D'azur: Anchoring Its Leading Position

Digital Entrepreneurship Monitor

Côte d’Azur: Anchoring its leading position Côte d’Azur: anchoring its leading position

The Côte d’Azur is often seen as a global leader in the use of Information and Communication Technologies (ICTs). Yet, its status has recently been jeopardized. In 2013-2015, Côte d’Azur witnessed the departure of a series of global leading tech companies, such as Texas Instruments and Samsung. The region became suddenly confronted to a shortage of digital talents as the firms’ exit also meant losing their high-profile employees. Although Texas Instruments and Samsung were soon replaced by other large companies e.g. Intel and Huawei, their departure has reinforced the need to develop forward-looking policies, responsive to a fast-paced digital territory.

Recovering from the loss of Successfully retaining the local 1 multinational companies talents The Métropole Nice Cote d’Azur is The local strategy to cope with the Problem statement still recovering from the disruption departure of these high profile caused by the loss of the high-profile corporations focused on the corporate residents. The reason retention of local talents. Those Over the past decade, the Métropole these tech companies are exiting is highly-skilled workers are perceived Nice Cote d’Azur has become a global mainly due to strategic decisions as the backbone of the region’s leader in the use of Information and that led to far-reaching internal economy and the key enablers of the Communication Technologies (ICTs). restructuring. digital transformation of local The Métropole Nice Cote d’Azur businesses. successfully shifted from a service- For instance, in the case of Texas based economy relying heavily on Instruments, the failure to make the In 2013, the launch of a job tourism to an increasingly digital shift was clearly the main protection plan enabled Samsung to diversified economy putting a great culprit. If the attractiveness of the take over the laid off employees of emphasis on KETs. metropolis was not questioned, the Texas Instruments. departures of these companies Departure of leading tech companies With the departure of the leading reinforced the need for forward- challenges the Métropole Korean mobile telephone looking local policies, responsive to a manufacturer, another employment The impact of digital transformation fast-paced digital territory. preservation plan was created and on the economy of the Métropole the 110 laid off engineers were hired Nice Cote d’Azur could have been Figure 1: Métropole Cote d’Azur by the American company Intel and slowed down by the departure of the Chinese company Huawei (that globally leading tech companies had recently opened its R&D site in from the Metropolitan area. Sophia-Antipolis). However, it also opened a wave of opportunity to welcome new global A digital strategy to remain players. attractive for multinational companies In 2013, the closure of Texas Instrument was followed by the The digital strategy of the Métropole departure of Samsung only 3 years Nice Cote d’Azur aims to set the after the implantation of its R&D metropolis as the ultimate centre in Sophia Antipolis. The wave destination for companies seeking to of relocations recently reached a invest in the fields of excellence of peak after the announcement of the the territory. impending closure of the R&D centre of NVIDIA in Sophia Antipolis, only Source: Team Côte d’Azur1 few years after its set-up in the city.

2 Côte d’Azur: anchoring its leading position

Over the past decades, the If the Métropole Nice Cote d’Azur can Figure3:InternetusebySMEsin metropolis has become a European benefit from the presence of digital the PACA region [%] leader in ICT, biotechnologies, e- champions, the digital tourism, e-energy and the silver transformation of a higher share of economy. The priority given to the SMEs could bring about more digital transformation of businesses sustainable economic growth and is reflected by the multiple prosperity in the metropolis. partnerships between the actors of A digitally advanced territory the digital ecosystem which have spawned new initiatives, In 2011, the ICT Observatory of the experiments and innovations. Provence Alpes Cotes d’Azur (PACA) region conducted a survey on the ICT use of regional SMEs. Survey results Over 800 foreign-owned indicate that the purchase of companies, accounting for more equipment and the creation of websites are the most frequent types than 13,000 jobs of investments in ICT made by have located to the regional SMEs (accounting for 46% Source: PACA ICT Observatory Nice basin and the and 11% of SMEs investments Plaine du Var area.² respectively). The positive impact of the ICT industry With respect to new digital technologies, only 26% of regional Digital technologies have the Smart investments SMEs have declared themselves capacity to increase SMEs’ ability to innovate and drive economic growth The metropolis has emerged as a ready to use cloud computing in the Métropole Nice Cote d’Azur. pioneer in the ‘Smart Grids’ and services and 18% of SMEs are using 6 The sector of ICT already represents ‘Smart Cities’ sector. These social networks. 1,710 companies accounting for successes were made possible 21,775 jobs in the Cote d’Azur. thanks to the leadership of the local Benefits of the ICT sector government who gathered all the in Cote d’Azur Over the past decade, about 9,000 stakeholders of the digital ecosystem jobs were created in the sector which to create a shared vision of EUR 4 bn in revenue, brought over EUR 4 billion in territory’s digital strategy. 55% in exports, revenue. The digital transformation of a higher share of businesses is, 9,000 jobs, therefore, poised to have a broad 2,500 dedicated to R&D7 impact on the economy of the 2 metropolis.

Figure 2: Network of accelerators and incubators form an extended and Realised benefits vibrant ecosystem and new opportunities

A world leading ecosystem Nice’s position in international rankings reflects that the Métropole is a leading digital ecosystem. Nice is the 4th Smart City in the world according to Juniper Research’s 2015 report3. The city was also the Winner of IBM’s 2011 ‘Smarter City Challenge4. At the national stage, the Métropole Nice Cote d’Azur formed part of the first territories to be awarded the 5 “French Tech” label . Source: Team Côte d’Azur1

3 Côte d’Azur: anchoring its leading position

3 Drivers and obstacles A Drivers

Key stakeholders

Métropole Nice Cote d’Azur acts as facilitator The Métropole Nice Cote d'Azur plays the role of facilitator in the digital ecosystem. University of Nice Sophia Antipolis acts as enabler The University of Nice Sophia Antipolis represents a key enabler of ©startupstockphotos.com/Pexels.com the digital transformation. The Intermediary organisations and The portal complies with the university educates the talents that clusters provide strategic support European DCAT (Data Catalogue will enable the digital Vocabulary) standard for data Intermediary organisations and transformation of local businesses. catalogues interoperability which clusters such as The Sophia facilitates the access for regional In addition, the involvement of the Antipolis-based Secured businesses. university in numerous industry- Communicating Solutions (SCS) academia collaborations also Cluster are providing strategic The Métropole Nice Cote d'Azur has reinforces its role as an enabler of support and guidance to local firms organised different workshops digital transformation. and therefore act as key drivers for (notably during the annual 8 Local businesses act as driving forces the digital transformation. Innovative City conference) in order to gather the insights of local citizens Local technology businesses Key initiatives and businesses on their data needs. constitute the driving force behind the digital transformation of Provision of Open data Portals The aim of these workshop was to traditional companies. Since 2009, enables citizen-centred innovation identify optimal services which Intel set its flag in the metropolis. In would bring added value to the Open The launch of an Open Data Portal doing so, Intel joined other global Data Portal. marks a reference point in the digital giants such as Gemalto, ARM, agenda of the Métropole Nice Cote STMicroelectronics and Maxim d'Azur. The Open Data Portal Integrated Products. provides a wide variety of cultural, Leading SMEs such as RivieraWaves, sport, administrative and EASII IC, ASIC Design House, environmental datasets related to Electronic Design Centre and even the territory Nice Côte d'Azur.9 Scaleo-Chip drive the digital ecosystem notably as they are at the origin of the creation of several digital disruptions.

4 Côte d’Azur: anchoring its leading position

The new egional Campus of For instance, the university recently A myriad of Fab Labs making Learning: moving towards academic joined the EIT Digital Master School Métropole Nice Cote d'Azur a true excellence initiative and created a partnership FabTerritory with 5 top European universities The new Regional Campus of The Métropole Nice Cote d'Azur (EIT ICT Labs) to deliver a master Learning stands out as a reference already includes no less than 4 Fab degree in "data science”.12 point in the academic community. Labs: The 24,000m² campus will open in Building on these insights, it comes • Based in Sophia Antipolis, SoFab 2017 and will welcome 1,800 at no surprise that the University of is a Fab Lab located at the heart learners at the heart of the "Eco- Sophia Antipolis is commonly of the Sophia Tech campus; Valley" of the Métropole Nice Côte referred to as being highly dedicated d’Azur.10 to the training of the digital • Ecolab is the brand new Fab Lab innovators and entrepreneurs of The objective of the new campus is of the CEEI, the main incubator of tomorrow. clear: Ensuring young people have the Métropole Nice Côte d’Azur. It the required skillset to meet the Numerous incubators and gives access to digital and current and future needs of regional accelerators driving digital technological tools to makers, businesses. The campus aims to transformation start-ups and the general public, prepare students for the occupations and supports open innovation in The Métropole Nice Cote d'Azur of the future by orienting its courses the territory; hosts 9 incubators and 3 towards tech sectors and promising accelerators. The incubators include: fields with high potential for growth • The Refabrique is a personal Fab in Cote d'Azur. • PACA Est Incubator; Lab created by a Cannes resident • Business Pole Sophia Antipolis; opening up access to his own Overall, EUR 83 million will be • CEEI Nice Côte d’Azur; digital tools to "makers" who invested to build the campus. The • 27Delvalle; cannot find them in the region. project benefits from public funding • PEPITE; The Refabrique is a prime made available by the national, • Inkubateur; example of a citizen initiative regional and local governments as • SKEMA Business School supporting the digital well as the Chamber of Commerce incubator; transformation of local and the PIA (Programme • ParisTech Entrepreneurs; businesses; d'Investissements d'Avenir- • EYE of EDHEC. Investments for the Future • The NavLab of the Métropole Nice Programme) of the national All these organisations participate in Cote d'Azur illustrates the government.11 the digital transformation strategy of adaptation of the Fab Lab concept the territory. University of Nice Sophia Antipolis: to meet the needs of the offering an innovative approach to Company-led accelerators professionals in the sailing education complementing the role of local industry, a leading sector of the incubators territory. The NavLab or The University of Nice Sophia "Navigateur" Lab (SailorLab) Antipolis is the second largest The added value of the Métropole offers a co-working space and a multidisciplinary university in Nice Côte d'Azur lies in the existence meeting point for sailors, France. The university has developed of company-led accelerators such as: entrepreneurs and creative a new concept and strategy to gather artists of the French Riviera. all the Côte d’Azur higher education • the accelerator of the global components under the umbrella of insurance company Allian, University of Côte d’Azur. • Vinci Autoroutes (which designs, Regional Campus of Learning builds, finances and operates University of Nice Sophia Antipolis: motorways in France); invested an institution dedicated to the EUR 83 million • the future "Village" accelerator of generation of new digital talent into a 24,000m2 campus the French bank Credit Agricole. The University of Nice Sophia for 1,800 learners Antipolis also aims to strengthen its “The regional campus of Learning digital competence in order to will enable regional businesses to find attract internet-savvy students and the right talents”– researchers from all around the Jacques Lesieur, CEO, Team Cote world. Through the reinforcement of d'Azur its digital focus, the university strives to provide students with the right skillset to facilitate their education- to-employment path.

5 Côte d’Azur: anchoring its leading position

©MarinaDa/Shutterstock.com Key infrastructures It includes: B Learning infrastructures oriented • Showroom space: 125m² towards digital technologies dedicated to exhibitions and to the promotion of the scientific Obstacles The Learning Centre located at the work; heart of the SophiaTech campus Promoting local talents, not factories stands out as the new Library 2.0. • Businesses space: 245 m² or businesses The new Learning Centre which was equipped with digital educational inaugurated in January 2015 offers Some local or national governments resources (e.g. SMART Board), co- focus too much on the promotion of innovative and customised services working spaces; to its target audience made up of headquarter offices, factory facilities or campus buildings rather than on students, teachers, researchers, • The location of SATT South-East 13 the promotion of local talents. start-ups and clusters. (Tech transfer accelerator) and More than a university library KIC ICT Lab (Knowledge and During the restructuring strategies Innovation Communities) on the of companies, public authorities The learning centre provides a Learning Centre aims to deepen should concentrate their efforts on unique environment facilitating the the connections with regional the retention of regional talents in collaboration between the academic businesses. the territory. and business world. This meeting point includes various facilities and Cote d’Azur benefits from a pool of co-working areas aimed at spurring Learning centre of the universities which offer the region a innovation on the campus. SophiaTech Campus continuous stream of a highly educated workforce. The region should, thus, shed a great "The Learning centre is an individual, showroom space; focus on this human capital by collective and multipurpose working • 125m² incentivising talents which are newly space.” - • 245m² business space. joining the workforce to enjoy the Frederique Vidal, President of the full range of business opportunities University Nice Sophia Antipolis in the region, leveraging on its recognised quality of life.

6 Côte d’Azur: anchoring its leading position

Creation of the SophiaTech Campus as a case in point 4 The creation of the SophiaTech Campus is a prime illustration of Lessons Learnt such a strategy. Opened in 2012, the campus creates synergies between the research laboratories of the A forward-looking strategy and a territory: shared vision of the future businesses • INRIA Méditerranée; The existence of a shared vision of • LEAT – CNRS/University the future among local stakeholders laboratory of electronics, is a precondition for the success of antennae and any digital transformation strategy. telecommunications); In Nice, an advisory board gathers • the Nice Sophia Antipolis representatives from local University; businesses and is led by the • engineering schools. president of Amadeus, the global IT company. This advisory board was The fruitful collaboration enables created by the economic the training of engineers in the fields development agency Team Cote of excellence of the territory such as d’Azur to keep pace with the latest research networks, security and technological advances likely to have mobile communications. an impact on the local economy.14 E-government activities as a driver This forward-looking approach for digital transformation enables local governments to adapt In the Provence Alpes Cote d’Azur their digital transformation region, one out of two SMEs use e- strategies prospectively, a must-have government services for tax given the complexity of the digital declarations. If the primary purpose economy and its potential market of e-government activities is to disruption. improve the efficiency of The role of universities: providing government-business interactions, the right skills to enable the digital these online services also have transformation demonstration effects for local firms and especially for SMEs. The digital transformation of a territory is only possible if local For many companies, e-government businesses have the right talents to activities constitute a model for harness the required digital online service delivery providing technologies. companies with new incentives to trust the security of online In order to equip students with the transactions. skills needed by local businesses, universities must not only have an Monitoring instruments are accurate understanding of the skills essential to the success of any digital required by local companies but they transformation strategy also need to be able to provide The creation of the IC Observatory students with these required “Ob’TIC” in the region PACA serves competencies. as a best practice example of an In this regard, universities initiative that enables policy makers sometimes need to acquire or to track the progress of their digital reinforce their expertise in transformation strategy. The particular areas. Strategies to performance of a survey on ICT use implement the required changes at citizen, firm and local government include, for instance, the creation of levels constitutes an effective way to partnerships with other academic collect Key Performance Indicators institutions already renowned in the on the digital transformation of the sought-after sector. whole territory.

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5 Key Recommendations

Category Role of the stakeholder · Develop a territorial digital transformation strategy in collaboration with neighbouring Local government localities · Engage key stakeholders in long-term partnerships and build trust relationship between them (e.g. through the organisation of regular local meetings) · Facilitate collaboration and cross-fertilisation between different industries and sectors · Invest in key infrastructures for a business-friendly environment such as smart transport infrastructures, business offices, academic buildings · Develop open data platforms · Design strategies to retain local talents Universities/ · Strengthen your digital competences (e.g. by seeking support from local tech champions) Research centres · Develop institutional strategies for capacity building · Retain and attract talents · Be proactive in the creation of a digital ecosystem around the university

· Collaborate with other stakeholders from the digital ecosystem Businesses · Innovate, create and apply digital technologies · Inform key stakeholders about your needs and seek for assistance when necessary

· Gain a deep understanding of your businesses Clusters · Inform local stakeholders about the strengths and needs of your businesses · Organise regular meetings with other clusters and local businesses

· Provide inspiration, support and-stimulation to local businesses Incubators/ Accelerators · Connect businesses with relevant stakeholders to enable their digital transformation · Provide spaces for people to meet and open space for cross-fertilization · Create synergies between the actions of the different accelerators and incubators of the territory References ¹ Team Côte d’Azur, http://www.investincotedazur.com/ 7 Team Côte d’Azur, “côte d’Azur: Join the digital elite”, 2015, available at: ² Team Côte d’Azur, “Nice Côte d’Azur and Éco-vallée Plaine du http://www.investincotedazur.com/wp-content/uploads/2016/06/tca- Var – Why choose between quality of life and business? “, 2016, passeport-it.pdf available at: http://www.investincotedazur.com/en/nice-cote- 8 Guillame Roux, “Secured Communicating Solutions Cluster”, 2015, available at: dazur-et-leco-vallee-plaine-du-var/ https://www.b2match.eu/cluster-to-cluster-2015/participants/417 3 Juniper Research, “Global Smart City – 2015”, 2015, available at: 9 Open Data Nice Côte d’Azur, http://opendata.nicecotedazur.org/site/ https://www.juniperresearch.com/press/press- 10 CESi, “Campus Regional Apprentissage : La CCI Nice Côte d'Azur, le CESI et releases/barcelona-named-global-smart-city-2015 l'Université Nice Sophia Antipolis lancent le volet pédagogique », available at: 4 IBM, Smarter Cities Challenge - Nice Côte d’Azur, 2011, available http://corporate.cesi.fr/actualites-campus-regional-apprentissage-la-cci-nice- at: https://smartercitieschallenge.org/assets/cities/nice- cote-d-azur-le-cesi-et-l-universite-nice-sophia-antipolis-lancent-le-volet- france/documents/nice-france-full-report-2011.pdf pedagogique.asp 5 Team Côte d’Azur, “Attracting Investments in the CÔTE D’AZUR: 11 French Senate, “Projet de campus régional d'apprentissage Nice-Côte- ANNUAL REVIEW 2015, available at: d'Azur », 2014: available at: http://www.investincotedazur.com/wp- https://www.senat.fr/questions/base/2014/qSEQ14110932S.html content/uploads/2016/07/annual-review-invest-in-cote-d-azur- 12 EIT Digital, http://www.eitdigital.eu/ 2015.pdf 13 Nice Sophia Antipolis University , “Learning Centre SophiaTech“, available at: 6 Région Provence-Alpes-Côte d’Azur, “Observation de la diffusion http://bibliotheque.unice.fr/infos-pratiques/bibliotheques/sophiatech et des usages des Technologies de l’Information et de la 14 Team Côte d’Azur, “L’attraction d’investissements sur la côte d’azur en communication en ProvenceAlpes-Côte d’Azur, 2011, Available at: 2013”, 2014, Available at: https://issuu.com/ccinicecotedazur/doc http://www.regionpaca.fr/etudesregion s/rapport_annuel_team_cote_d_azur_201 ales.html?jumpurl=uploads%2Fmedia% 2Fetude_com_obtic_barometre_2011_04 15_03.pdf

This report was prepared with the support of PwC, CARSA, IDATE and ESN as part of the Digital Entrepreneurship Monitor project for the European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. Editors: Laurent Probst, Bertrand Pedersen, Olivia-Kelly Lonkeu, PwC © - 2016 – European Union. All rights reserved. Certain parts are licensed under conditions to the EU. This publication is funded under the COSME programme of the European Union.